Monday, June 6, 2011

Minnesota Man Pleads Guilty To Defrauding Insurance Company Out Of $7 Million

Travis Magdalena Scott, 34, of Eden Prairie, Minnesota, pleaded guilty to charges he defrauded Zurich North America out of at least $7.1 million, but as much as $10 million.  According to prosecutors, in the latter half of 2008, Scott submitted fraudulent insurance claims for his business, Security Management Technologies, which was a Zurich insured, claiming it was destroyed due to a lighting strike.  Scott was paid for both physical damages as well as business interruption claims.  Prosecutors alleged that Scott used the ill-gotten gains to support a lavish lifestyle that included personal aircraft, luxury vehicles and watercraft.  Research suggests that Scott offered aircraft flight training. 

Read the story here and here.

Read the DOJ announcement here.

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